Shareholders in CIC Insurance Group Plc are raising serious concerns about the company’s governance and compliance with Capital Markets Authority (CMA) regulations following a delayed profit warning and alleged late disclosure of major asset sales.
On 23 February 2026, CIC Group publicly issued a profit warning projecting a 25 per cent drop in net earnings for the year ended 31 December 2025, citing the non-recurrence of a one-off gain recorded in 2024 and higher insurance claims as key drivers.
However, a group of dissatisfied investors claims the warning came significantly later than required under CMA’s 2023 Capital Markets (Public Offers, Listings and Disclosure) Regulations, which obligate listed firms to promptly disclose a material change — including an expected 25 per cent or greater decline in profit — within 24 hours of becoming aware of such information. Critics assert that CIC’s management knew about the projected earnings drop before December 2025, yet only notified the market in late February, just weeks before full year results are due. This, they argue, is a breach of regulatory disclosure rules that could have impacted share price and investor decisions.
In addition to the profit warning timing, investors have spotlighted delays in disclosing significant land sales. CIC reported selling 50 acres near Tatu City and 100 acres in Kajiado County in early 2026, but the details and timing of those transactions — alongside additional disposal of Kiambu property — have not been clearly communicated to the market according to shareholders. These asset sales generated proceeds and one-off gains that influenced prior earnings, yet the sequence and disclosure timing have become contentious issues.
The group’s 2024 accounts reportedly included a fair value gain of about KES 1 billion arising from the revaluation of Kiambu land — a benefit that inflated profits that year but will not recur in the current financial period.
Investors Demand Answers and Legal Action Looms
Shareholders have called on the CMA and the Nairobi Securities Exchange Plc to investigate the alleged disclosure lapses and hold CIC’s board and management accountable. The investors also urged the CMA to enforce compliance with capital markets rules and protect minority shareholders. They have pledged to pursue legal action if satisfactory explanations are not provided.
“We demand transparency on the exact dates when the land transactions were completed and disclosed. We also want answers as to why the profit warning was only issued in February, despite earlier knowledge of the projected drop.”
Regulatory Context and Market Reaction
Under the CMA regulations, listed companies are required not only to disclose material information promptly but also to ensure the accuracy and completeness of such announcements to maintain market integrity and protect investors. Delays or omissions in disclosure can trigger sanctions, fines or other regulatory enforcement measures.
Market commentary has highlighted a broader trend of profit warnings among Kenyan listed firms for 2025, with others — including financial and aviation sector players — also flagging weaker earnings.
CIC’s board has publicly emphasised confidence in its long-term strategy and capital strength as it implements its 2026–2030 strategic plan, positioning the group to deliver shareholder value despite cyclical earnings pressures.
